Uttam Galva Metallics and Uttam Value Steels, subsidiaries of Indian steel producer Uttam Galva Steels Limited, have stated that Turkey’s second-largest state-owned bank Ziraat Bankasi has written to the State Bank of India (SBI) that one of its high-net-worth clients is interested in acquiring their assets, according to media reports. However, the name of the Turkish company has not been disclosed.
Uttam Galva Metallics and Uttam Value Steels owe banks INR 32 billion and INR 22 billion, respectively. The two companies are reportedly in talks with foreign investors in an effort to avoid full insolvency proceedings.
The insolvency hearing of Uttam Galva Steels has been adjourned by India’s National Company Law Tribunal (NCLT) until August 13.